Discriminatory practice: CCP issues policy note to FBR

MULTAN: The Competition Commission of Pakistan (CCP) has issued a policy note to the Federal Board of Revenue (FBR) to eliminate discrimination against some market players of the steel industry of imposing different sales tax rate.

The CCP took notice of a complaint filed by Madina Enterprises Limited (Madina Steel), which is using alternative energy, and alleged that the mechanism of charging sales tax by the FBR was discriminatory.

Looking into the matter, the CCP found that Madina Steel was charged general sales tax (GST) at 17% of ad valorem production simply on account of producing its own electricity through the use of renewable energy sources such as bagasse and rice husk, while those units acquiring electricity from DISCOs were charged GST at Rs9 per unit of electricity consumed.

Published in The Express Tribune, June 22^nd, 2016.

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